Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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PT. Serendipity is a company that produces shoes and currently applies a cash-only sales
policy. In this new year's holiday season, the company is considering changing its cash-only
sales policy to a net 45-day credit. The new credit policy is expected to increase sales from
1200 units per month to 1350 units per month. The current selling price per unit and variable
cost per unit are IDR 175.000 and IDR 100.000, respectively. However, if the product is sold
on credit, the selling price per unit and the variable cost per unit will remain constant. The
required return is 3% per month.
Based on the above information, calculate the NPV of the new credit policy! Should PT.
Serendipity change its sales policy?
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Transcribed Image Text:PT. Serendipity is a company that produces shoes and currently applies a cash-only sales policy. In this new year's holiday season, the company is considering changing its cash-only sales policy to a net 45-day credit. The new credit policy is expected to increase sales from 1200 units per month to 1350 units per month. The current selling price per unit and variable cost per unit are IDR 175.000 and IDR 100.000, respectively. However, if the product is sold on credit, the selling price per unit and the variable cost per unit will remain constant. The required return is 3% per month. Based on the above information, calculate the NPV of the new credit policy! Should PT. Serendipity change its sales policy?
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